Public transport improvements in Whanganui will continue as planned next year.
Horizons Regional Council is aiming to slash rates increases next year, but Whanganui’s could still be 11%.
At a meeting on December 17, Horizons chief financial officer Adrian Smith said year three of its long-term plan (2026-27) had a 9% increase.
Through a series of workshops, the council had signalled an intention for that to be reduced to between 4.6% and 4.9%, he said.
Smith’s report to the council said that meant removing 14 proposed new roles, including the new transport team leader, and removing the iwi adviser on the council’s policy team.
There would be no additional work programmed for biodiversity, science and policy, and a delay in a proposed regional public transport service.
But public transport improvements in Whanganui would be kept.
A new Whanganui network is planned for April, with two high-frequency routes and three hourly services.
Buses will run seven days a week.
The average Horizons rates increase for 2025-26 was 8.8%.
At the meeting, council chief executive Michael McCartney said reducing the rates increase did not mean cutting services, but it would put “downward pressure on the intended growth of the business”.
He said there was a clear expectation for cost reduction of local government expenses.
“That’s manifested in the rates capping legislation that’s come out, so we’re recognising that.
“The fundamental principle we’ve applied from officers is affordability.”
Earlier this month, Prime Minister Christopher Luxon and Local Government Minister Simon Watts said consultation would begin immediately on limiting annual rates rises to between 2% and 4%, with the cap coming into effect in 2029.
In a statement, Horizons chairwoman Nikki Riley said Whanganui urban areas would have the biggest rates increase due to additional flood protection work related to Te Pūwaha – the port revitalisation project – and public transport improvements.
“Those projects were signed off earlier this year as part of the 2025-26 annual plan process.
“Full confirmed figures will be available closer to when the next annual plan is signed off next year.”
She said that, before this week’s meeting, the proposed average rates increase for the 2026-27 financial year was around 10%.
Speaking to the Chronicle, Whanganui-based regional councillor Alan Taylor said the public transport and Te Pūwaha projects meant a possible average rates increase for the district of about 11% for 2025-26.
“We have cut other costs that Whanganui shares, such as projected staffing, and our insurance costs have come in less than we might have expected, given the massive rises two years ago,” he said.
“That’s insurance mainly on our river assets - flood banks, stop banks, flood gates, all that kind of stuff.
“What we will deliver is pretty much business as usual. That 4.6% reflects the extra cost of doing the same business.”
Taylor said it was difficult when one territorial authority, such as Whanganui, had higher expenses than others.
But the money was getting spent in Whanganui. “That’s the important thing that ratepayers should understand.
“We are benefiting from it, we’re not propping up stuff in other territorial authorities that won’t be of any significance to Whanganui people.”
He said initiatives like Te Pūwaha and public transport offered long-term sustainability.
“It’s never nice to say to people, ‘We’re going to have to rate you and take money for work you might not think we need to do,’ but our assessments are that these things are important.”
Of the 320 submissions to Horizons’ annual plan for 2025-26, 89% favoured more investment in Whanganui public transport.
The council’s next annual plan will be signed off in June.
Mike Tweed is a multimedia journalist at the Whanganui Chronicle. Since starting in March 2020, he has dabbled in everything from sport to music. At present, his focus is local government, primarily Whanganui District Council.